Millions of shoppers set to get £70 each after Mastercard ruling

It comes after a long-running legal case

Former financial ombudsman Walter Merricks brought forward the case, arguing that consumers had been charged higher fees over a 15-year period.

Fees had been wrongly levied on transactions between 1992 and 2008.

Mastercard have refused to comment on the ruling, but it is not necessary to have owned a Mastercard card during this time period to be eligible for compensation.

Merricks launched the case after the European Commission ruled that Mastercard's "multilateral interchange fees" that were charged to businesses had infringed competition law.

The fees had been paid by retailers that accepted Mastercard credit cards, and not consumers directly

However, Merricks argued that consumers had the charges passed onto them via higher costs for goods and services.

"Mastercard's fees paid by retailers for processing card transactions had been unlawfully high," Merricks said.

"Virtually all UK consumers had lost out for long periods by paying higher prices than they should have done as retailers passed on those costs," he continued.

"The settlement that has today been finally approved represents a fair and just outcome for UK consumers."

Who can apply for compensation from Mastercard?

Shoppers who lived in England, Wales or Northern Ireland for at least three months between June 1997 and June 2008 are eligible, if they purchased goods from a shop which accepted Mastercard credit cards.

For consumers in Scotland, the start date is from May 1992.

The settlement as a whole consists of £200m, with £100m for consumers.

If 5% of those affected claim, people are expected to get £45 each. However, if fewer come forward, then claimants will get £70 each.

Merricks alleged that 46 million shoppers in the UK were overcharged.

How do you apply for compensation from Mastercard?

Consumers will soon be able to use an online form to register to get a payout, Merricks says.